Export Transmission Service Tariff Study (SE-78)

The Export Transmission Service Tariff revenues are based on the volume of export transactions from Ontario.  The current tariff rate is $1/MWh.  The IESO collects these revenues and remits them on a monthly basis to the transmission company whose transmission system is used to facilitate the export.

As an outcome of Hydro One's transmission rate application, parties to the proceeding agreed that the current export transmission service (ETS) rate of $1/MWh be maintained until the 2010 transmission rate setting process. However, as part of the Ontario Energy Board's decision, the IESO was to undertake a study of the "appropriate" ETS tariff, taking into consideration a minimum of three options identified and discussed as well as engage in negotiations with neighbouring jurisdictions towards establishing acceptable reciprocal arrangements with the aim of eliminating the ETS tariff. A fourth option was added to the scope of the review at stakeholder's further request.

The four options that will be assessed as part of the study are as follows:

Option 1:	Remain the same at $1/MWh applicable to export transactions (Status Quo).
Option 2:	Equivalent Average Network - Under this option, export and wheel through transactions would pay a rate equivalent to Transmission Network Service, but using energy as the charge determinant (i.e. $/MWh).
Option 3:	Reciprocal Treatment of Export Transmission Service Charge. This option considers two potential mode of reciprocal treatment, including the mutual elimination of all ETS tariffs between jurisdictions.
Option 4:	Unilateral Elimination of the ETS tariff. This option considers two scenarios under which the Ontario ETS tariff could be unilaterally eliminated: 1) unilateral elimination of the tariff in all hours; and 2) unilateral elimination of the tariff only during off-peak hours.

This initiative will be of interest to all market participants; in particular, transmission customers as well as Market Participants directly involved in performing export transactions.

Stakeholder Engagement Plan
Stakeholder Engagement Plan (Revised, January 26, 2009)
Stakeholder Engagement Plan (Revised, June 8, 2009)
Working Group

Date Agenda/Minutes	Supporting Material	Expected Actions
October 6, 2009	OEB Decision Regarding ETS Tariff Review
September 23, 2009	Final Evaluation of Stakeholder Engagement Effectiveness
September 21, 2009	Hydro One Recommendation Regarding ETS Tariff Review
August 28, 2009	IESO submissions to the Ontario Energy Board and publication of findings and recommendations • Export Transmission Service (ETS) Charge Recommendation of an Appropriate ETS Charge for Ontario	IESO to publish findings and recommendations
August 27, 2009	Communication to stakeholders on IESO recommendation to the Ontario Energy Board and draft report
August 12, 2009	IESO Memo to OEB Requesting Second Extension
August 10, 2009	Conference Call • Export Transmission Service (ETS) Tariff Study – Discussion and Recommendations Stakeholder Feedback  • Summary of Session Feedback
August 4, 2009	ETS Final Study Report
July 21, 2009	Deadline for stakeholder comments on preliminary results and impact assessments Stakeholder Feedback  • AMPCO  • Ontario Power Generation  • Power Workers Union
July 14, 2009	• IESO Response to the key issues raised by stakeholders • Assessment of Reliability and Operational Impacts
July 7, 2009	Deadline for comments on the preliminary results and recommendations Stakeholder Feedback  • Brookfield Renewable Power	IESO to post feedback from stakeholders
June 25, 2009 Agenda Minutes	Second meeting to present/post preliminary results of the study • Export Transmission Service (ETS) Charge Scenario Analysis • Overview of ETS Study Preliminary Results • Observed Impacts on Surplus Base Load Generation Events • Recap of ETS Tariff Study and Activities Stakeholder Feedback  • Summary of Session Feedback	Dialogue — IESO to publish initial study results
June 2, 2009	Update on initiative provided at June 2 Dispatchable Load Working Group meeting
May 7, 2009	IESO Memo to OEB requesting Extension
February 9, 2009	Post IESO response to stakeholder feedback on the study approach and study methodology • IESO Response to Stakeholder Feedback	Dialogue — IESO to post feedback.
February 5, 2009	Deadline for stakeholder comment on study approach and study methodology Stakeholder Feedback •  Bruce Power	IESO to post feedback from stakeholders
January 22, 2009 Agenda Minutes (Final)	First meeting to review study approach and study methodology  •  Introduction  •  Impact Assessments and Analysis  •  Overview of North American Electricity and Environmental Model (NEEM) – Barclay Gibbs (CRA International)  • A Jurisdictional Survey of Export and Wheel Through Service Rates (RJ Rudden Associates) Stakeholder Feedback  • Summary of Session Feedback	Dialogue — Presentation on proposed approach and study methodology
January 16,  2009	Posting of revised plan incorporating feedback from stakeholders	IESO to publish revised plan and list of members of the working group
January 12, 2009	Deadline for written input from stakeholders on the plan and volunteers for the group Stakeholder Feedback  • SanZoe Consulting Incorporated  • Vulnerable Energy Consumers Coalition (VECC)   • IESO Response to Stakeholder Feedback	Dialogue — Stakeholder input
December 11, 2008	Post and communicate stakeholder engagement plan.  Solicit volunteers for stakeholder group	Stakeholders to provide written feedback